Microsoft Shares Face Longest Losing Streak in Years

Microsoft Corporation is confronting its most prolonged period of share price declines in recent years, prompting a difficult reassessment among investors. The technology behemoth is experiencing significant selling pressure and is ceding crucial ground to its rivals within the elite group of "Magnificent Seven" stocks.

A major realignment has occurred in the global hierarchy of the world's most valuable companies. Alphabet Inc., the parent company of Google, has now surpassed Microsoft in terms of market capitalization. As Microsoft's valuation receded to approximately $3.51 trillion, Alphabet advanced with a market cap of $3.62 trillion. This change in leadership highlights a broader sector rotation, where capital is being pulled from perceived laggards and aggressively redeployed into equities demonstrating stronger momentum.

Key Data Points

• Market Value Decline: Microsoft's valuation drops to $3.51 trillion, losing its top position to Alphabet.
• Correction Depth: The stock has declined by approximately 13% since the late October 2025 earnings release.
• Institutional Selling: The Bill & Melinda Gates Foundation Trust divested 65% of its holdings.
• Analyst Action: Firms including Redburn have downgraded the stock to a "Neutral" rating.

The Core of the Sell-Off

The primary driver behind the current downturn remains the colossal capital expenditures (CapEx) dedicated to artificial intelligence infrastructure. Investors are growing increasingly concerned about the widening gap between the exploding costs of AI development and its immediate contribution to revenue. Although the cloud division continues to expand, the market is currently punishing the heavy investment cycle—which includes $80 billion earmarked for data centers—without mercy. Apprehensions over margin pressure are being amplified by narratives of a potential "AI bubble," contributing to volatility across the semiconductor and software sectors.

Should investors sell immediately? Or is it worth buying Microsoft?

The equity is entrenched in a sustained downward trend. In the latest 24-hour session, the decline accelerated further, with shares slipping another 1.32% to settle at $472. This confirms a distinct bearish pattern, marking the longest continuous losing streak for the company since 2022.

Signals from the Smart Money

Substantial transactions by major institutional players are adding to the downward pressure. Reports confirm that the Bill & Melinda Gates Foundation Trust liquidated a massive portion of its Microsoft position, parting with 65% of its shares. Moves of this magnitude by key insiders often trigger alarm among retail investors.

Concurrently, financial analysts are recalibrating their outlooks. The recent downgrade to "Neutral" by Redburn explicitly cites the prevailing market anxieties concerning capital efficiency and profitability. The specific concern is that the enormous burden of "AI Capex" could limit free cash flow growth in the near term, making the stock less attractive compared to more agile technology competitors. Market participants are noting a drastic shift in sentiment as these factors converge.